Credit Card Debt

When financial hardships arise, credit card debt can get out of control and become overwhelming. If you are struggling with debt in Vancouver, Washington, there are legal options available to help you manage or even eliminate these obligations.

Consulting a Vancouver bankruptcy attorney can help you determine the right course of action for your situation and lead you to much-needed financial relief.

Washington has its own statutes in place that regulate debt collection and other credit obligations for lenders and consumers, ensuring fair treatment for everyone. Here are some of the key legal provisions you will come across:

• RCW 19.16.250: This limits collection agency practices, prohibiting harassment and deceptive tactics.
• RCW 4.16.040: This establishes a six-year statute of limitations for credit card debt collection.
• RCW 6.27.150: This statute governs wage garnishment and limits the amount creditors can seize from your paychecks.
• RCW 6.32.010: This covers exemptions for your personal property and says it can’t be taken to pay off your credit card debt.

When you fall behind on your credit card payments, your creditors may choose to take the following steps:

• Collection Notices: These are frequent attempts to recover the debt you owe through mail and phone calls.
• Debt Collection Agencies: If the original creditor fails to collect, third-party collectors may take over.
• Lawsuits: Creditors may file a lawsuit in Clark County courts to obtain a judgment against you for what you owe.
• Wage Garnishment: With a judgment from the court, your creditors can request a garnishment of your wages up to 25% of your disposable earnings.
• Bank Levies and Property Liens: Creditors can seize your bank funds or place liens on your property for the unpaid debt.

For Vancouver residents like yourself who are burdened by mountains of credit card debt, bankruptcy may be the relief you have been looking for. Consulting a bankruptcy attorney in Clark County can be a good first step.

Chapter 7 bankruptcy eliminates most of your unsecured debts, including credit card balances. Your eligibility for this depends on passing the Means Test, which compares your income to Washington’s median income level.

• Discharges your credit card debt entirely
• Protects certain assets under Washington’s exemption laws (RCW 6.15.010)
• Stops creditor harassment and lawsuits against you

• May require liquidation of non-exempt assets
• Stays on credit reports for up to 10 years
• Not available to all income levels

Chapter 13 allows you to restructure your debt into a manageable repayment plan that lasts three to five years.

• Prevents foreclosure and repossessions
• Stops wage garnishments
• Enables a partial or full discharge of credit card debt upon plan completion

• Requires steady income for monthly payments
• Commitment to a long-term plan
• Stays on credit reports for seven years

If you prefer to avoid bankruptcy, there may be some alternatives you can consider:

• Debt Settlement: This involves negotiating with your creditors to reduce the balance owed.
• Debt Consolidation: This is when you combine multiple debts into one loan with a lower interest rate.
• Credit Counseling: You can also choose to work with a nonprofit agency to develop a debt management plan you can handle.
• Negotiating Lower Interest Rates: Some creditors may be willing to agree to reduced interest rates for timely payments.

Understanding your rights as a consumer can help protect you from unfair debt collection practices. The Fair Debt Collection Practices Act (FDCPA) and Washington Collection Agency Act (RCW 19.16.250) both regulate how your creditors and collection agencies can go after these debts.

• Debt collectors can’t harass or threaten consumers.
• They must provide written validation of the debt within five days of initial contact.
• You have the right to dispute any debt in writing.
• Wage garnishments and bank levies require a court judgment.

If your creditors violate these laws, you can file a complaint with the Washington State Attorney General’s Office or pursue legal action.

Your credit report plays a significant role in determining your financial health and future borrowing ability.

In Washington, you are entitled to one free credit report each year from each of the major credit bureaus (Equifax, Experian, and TransUnion). Reviewing your credit report regularly can help you:

• Identify errors or fraudulent accounts
• Understand your debt-to-income ratio
• Improve your credit score by making timely payments and reducing all outstanding balances

If you are considering bankruptcy, a Vancouver bankruptcy attorney can help you analyze how your different debt relief options will impact your credit and long-term financial goals.

Bankruptcy laws are complex, and the outcome of your case can depend on the legal strategy you have. A bankruptcy attorney in Vancouver can help you by assessing your eligibility for bankruptcy, protecting your assets from liquidation, and representing you in Clark County court proceedings.

If you are struggling with credit card debt, consulting one of our skilled Vancouver bankruptcy attorneys can help you determine the right course of action.